In an increasing-cost industry, the long-run market supply curve is
a. horizontal
b. vertical
c. upward sloping
d. downward sloping
e. nonexistent
C
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The figure above shows the price of a DVD player from 2003 to 2007
a) What type of graph is illustrated above? b) What is the trend in the price of a DVD player?
All of the following statements regarding rational ignorance are true except
a) combined with special interest groups, it yields inefficiency in the provision of public goods b) it allows special interest groups to exert political influence c) it leads to an efficient outcome d) none of the above
If the social cost of producing a good or service exceeds the private cost
A) a positive externality exists. B) the sum of consumer surplus and producer surplus is maximized. C) the market achieves economic efficiency. D) a negative externality exists.
Drug companies tend to attribute higher drug prices on
A. high litigation costs on drugs that are ultimately shown to be dangerous. B. the low percentage of attempts that actually result in revenue producing drugs and high litigation costs on drugs that are ultimately shown to be dangerous. C. doctors distributing too many free samples. D. the low percentage of attempts that actually result in revenue producing drugs.